Notice 2025-50, page 542.

This notice provides a definition for “rural area” under § 1400Z-2(b)(2)(C)(ii) of the Internal Revenue Code (Code), as amended by Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBBA). This notice is also intended to provide guidance to taxpayers applying the substantial improvement provisions of § 1400Z-2(d)(2)(D)(ii), as amended by OBBBA.

T.D. 10034, page 523. This document contains final regulations that remove the associated property rule and similar rules from the existing

Finding Lists begin on page ii.

regulations regarding the interest capitalization requirements for improvements to designated property. In addition, this document contains final regulations that modify the definition of “improvement” for purposes of applying those existing regulations. Lastly, this document contains final regulations that modify other rules in those existing regulations in light of the removal of the associated property rule. The final regulations affect taxpayers making improvements to real or tangible personal property that constitute the production of designated property.

T.D. 10036, page 525. These final regulations provide recordkeeping and reporting requirements for the average income test for purposes of the section 42 low-income housing credit. If a building is part of a residential rental project that satisfies this test, the building may be eligible to earn low-income housing credits. These final regulations affect owners of low-income housing projects and State or local housing credit agencies that monitor compliance with the requirements for low-income housing credits.